Today (September 10), Spanish Prime Minister Pedro Sanchez, during a visit to China, signed a Memorandum of Understanding (MoU) with Envision to build the green hydrogen industrial park.
With construction expected to commence in 2026, the wind giant expects to produce PEM and alkaline systems from the factory, while also looking to manufacture green ammonia production equipment.
Envision founder and Chairman, Lei Zhang, said Spain’s resources, market scale and expertise made it well-placed to be a leader in green hydrogen.
The Chinese firm’s electric vehicle battery business AESC, broke ground on a $1.1bn lithium iron phosphate battery gigafactory in Spain this July.
The new factory’s announcement came just a week after China’s Hygreen Energy revealed plans for a €2bn 5GW electrolyser factory in the country.
Read more: China’s HyGreen Energy looks to build 5GW Spanish electrolyser factory in €2bn expansion
However, the major plans from the original equipment manufacturers (OEMs) come amid growing concerns from Western manufacturers that they could lose market share to Chinese competitors.
EU Climate Commissioner Wopke Hoeskstra, said the next European Hydrogen Bank (EHB) subsidy auction could have Made in Europe criteria to support domestic firms.
Read more: EU climate chief vows to tighten EHB rules amid cheap Chinese electrolyser influx
Europe’s hydrogen ambitions tested: Can electrolyser OEMs compete?
The threat of a European electrolyser industry wipeout is real and could happen faster than it did in the solar PV market without proper policy intervention, warned Hydrogen Europe CEO, Jorgo Chatzimarkakis, in an interview with H2 View.
His comments come amid what appears to be a widespread crisis across the EU’s clean technology manufacturing industries, which face stark competition from often state-subsidised companies in China that offer far lower-cost products.
In recent months, the EU solar manufacturing industry reached its tipping point. After sustained calls for help, early 2024 saw solar players warn of bankruptcy, production pauses, factory closures and debt restructuring. In March, Swiss-based Meyer Burger shut the doors of its German solar module factory in Freiburg.
The overarching message from the solar companies at the centre of the storm: low-priced Chinese modules are distorting competition and exacerbating market pressures.
Solar Industry Regions Europe (SIRE), in a position paper, claimed an oversupply of imported PV modules – often supported by Chinese subsidies – drove prices below EU production costs…
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